PACIFIC STATE BANCORP AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited	June 30,		December 31,
(Dollars in thousands)	2008		2007
ASSETS
Cash and due from banks	$	16,079	$	13,794
Federal funds sold		35,091		31,880
Total cash and cash equivalents		51,170		45,674
Interest bearing deposits at other banks		-		3,000
Investment securities		47,441		41,352
Loans, less allowance for loan losses of $3,427 in 2008 and $3,948 in 2007		321,502		308,458
Premises and equipment, net		15,234		14,269
Company owned life insurance		8,160		8,025
Accrued interest receivable and other assets		10,407		10,296
Total assets	$	453,914	$	431,074
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing	$	67,123	$	67,071
Interest bearing		304,281		274,750
Total deposits		371,404		341,821
Other borrowings		35,000		40,000
Subordinated debentures		8,764		8,764
Accrued interest payable and other liabilities		3,791		6,453
Total liabilities		418,959		397,038
Commitments and contingencies
Shareholders' equity:
Preferred stock - 2,000,000 shares authorized; none issued or outstanding		-		-
Common stock - no par value; 24,000,000 shares authorized; issued and outstanding –3,715,598 shares in 2008 and 3,707,698 shares in 2007		10,645		10,418
Retained earnings		25,678		24,004
Accumulated other comprehensive loss, net of taxes		(1,368)		(386)
Total shareholders' equity		34,955		34,036
Total liabilities and shareholders' equity	$	453,914	$	431,074

PACIFIC STATE BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in thousands, except per share data)	2008		2007		2008		2007
Interest income:
Interest and fees on loans	$	6,201	$	7,300	$	12,677	$	14,142
Interest on Federal funds sold		141		348		256		669
Interest on investment securities		892		484		1,602		827
Total interest income		7,234		8,132		14,535		15,638
Interest expense:
Interest on deposits		2,860		3,239		5,658		6,156
Interest on other borrowings		418		55		848		121
Interest on subordinated debentures		108		185		262		377
Total interest expense		3,386		3,479		6,768		6,654
Net interest income before provision for loan losses		3,848		4,653		7,767		8,984
Provision for loan losses		600		55		810		220
Net interest income after provision for loan losses		3,248		4,598		6,957		8,764
Non-interest income:
Service charges		223		217		460		438
Gain on sale of loans		132		19		151		28
Other income		242		470		458		926
Total non-interest income		597		706		1,069		1,392
Non-interest expenses:
Salaries and employee benefits		1,282		1,506		2,550		2,988
Occupancy		302		277		565		563
Furniture and equipment		195		200		374		367
Other expenses		1,046		1,019		1,831		1,783
Total non-interest expenses		2,825		3,002		5,320		5,701
Income before provision for income taxes		1,020		2,302		2,706		4,455
Provision for income taxes		441		904		1,033		1,720
Net income	$	579	$	1,398	$	1,673	$	2,735
Basic earnings per share	$	0.16	$	0.38	$	0.45	$	0.75
Diluted earnings per share	$	0.15	$	0.35	$	0.43	$	0.68